Nvidia exec warns GPU supply could be ‘very tight’ over following months

Jensen Huang holding an Nvidia RTX GPU. — (Image credit: Getty Images)

Nvidia recently released its latest earnings report, and as expected, the tech giant broke records. Although its gaming division made a healthy profit year-over-year, the company reported a noticeable double-digit decline quarter-over-quarter.

According to the earnings report, total revenue reached $68.1 billion, up 20% from the previous quarter and a significant 73% year-over-year. As anticipated, the biggest growth came from AI data centers, which soared to $62.3 billion, up 22% sequentially and 75% YoY. This now represents 91% of Nvidia’s business.

Nvidia RTX 50-series GPU held in hand with Nvidia logo on green background

(Image credit: Future / Tom's Guide)

But what about gaming, the segment that’s most important to PC gamers and RTX fans? Gaming revenue was $3.7 billion, up 47% from the same quarter last year and contributing to a record full-year gaming total of $16 billion (up 41% YoY). However, it declined 13% from Q3's $4.3 billion, missing analyst expectations of around $4 billion.

Nvidia attributed this to the usual post-holiday “channel inventory moderation,” meaning that retailers and partners managed excess stock after a strong holiday season. While that might have been true before, the current supply-chain issues have changed the situation. In short, RAM shortages are prompting Nvidia to focus more on AI infrastructure rather than consumer GPUs.

What this means for you

If you’re looking for a new GPU, you may find it difficult to find one now and in the coming months. Nvidia CFO Colette Kress warned that upcoming quarters will be “very tight” due to the RAM shortage, with shortages possibly becoming “more aggressive” and retail prices remaining high or rising further. As we recently reported, don’t expect next-generation launches from Nvidia any time soon.

My advice is to wait until the market stabilizes. Even if Nvidia is prioritizing data centers over gaming, the latter still generates $16 billion annually, and GeForce RTX cards remain the most popular GPUs among PC gamers. Stay patient and take advantage of any deals that come your way, which we'll do our best to highlight when we come across them ourselves.

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Tony is a computing writer at Tom’s Guide covering laptops, tablets, Windows, and iOS. During his off-hours, Tony enjoys reading comic books, playing video games, reading speculative fiction novels, and spending too much time on X/Twitter. His non-nerdy pursuits involve attending Hard Rock/Heavy Metal concerts and going to NYC bars with friends and colleagues. His work has appeared in publications such as Laptop Mag, PC Mag, and various independent gaming sites.

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